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2023-12-31-accounts

REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023

THE SOCIETY OF OPERATIONS ENGINEERS

Registered in England Company No 03667147 Registered Charity No 1081753

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023

INDEX Page
Council, Staff and Professional Contacts 2
Report of the Trustees 3
Independent Auditor’s Report 12
Consolidated Statement of Financial Activities 16
Consolidated and Society Balance Sheets 17
Consolidated Cash Flow Statement 18
Notes to the Financial Statements 19

Registered Office

22 Greencoat Place, London SW1P 1PR Tel: 020 7630 1111 Website: www.soe.org.uk

The Society is governed by its Memorandum and Articles of Association

VAT Registration No 751 8131 42

A company limited by guarantee.

A Licensed Member of the Engineering Council and the Society for the Environment

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THE SOCIETY OF OPERATIONS ENGINEERS

Patron

Sir John Parker GBE

TRUSTEE BOARD

President JE Eastman EngTech CEnv FSOE FIRTE Chair SM Stephenson EngTech FSOE FIRTE (resigned Aug 2023) Chair HM Seymour CEng CEnv FSOE FIPlantE FIRTE Hon. Treasurer MP Sweetmore Eng Tech MSOE MIRTE Director International C Grime EngTech CEnv FSOE FIRTE (resigned Oct 2023) Director Standards GM Gilby IEng CEnv FSOE FIPlantE Director Services I Jones MSOE MIRTE (resigned Aug 2023) Director Governance, Risk & Compliance HM Seymour CEng CEnv FSOE FIPlantE FIRTE Director IRTE SS Cheema EngTech FSOE FIRTE (appointed Oct 2021) Director BES D Greer IEng REnvP MSOE MBES (appointed Jun 2022) Director Environment SG Tweed CEng CEnv FSOE FIPlantE (appointed Jun 2022) Chair of Membership & professional Standards IM MacDonald IEng FSOE FIRTE FIPlantE Director Co-opted CJ Harries MSOE MIRTE Director Co-opted D Rathke MSOE MIRTE (resigned Jan 2023)

MANAGEMENT TEAM

Chief Operating Officer Head of Business Operations & Company Secretary CV Show Director CV Show Executive Lead Head of Finance Marketing & Communications Manager Membership Manager Membership, Registration and Professional Standards Lead I.T. Manager

Daniel Moir BA(Hons)

Emma Thompson MSOE

Murray Ellis (until Jan 2023) Susan Kitchener (from Aug 2023) Pamela Mansley FCCA Greeshma Suresh (from Oct 2023) Oliver Teasell MSOE MBES Robin Bates MSOE MBES

Gilbert Francourt

PROFESSIONAL ADVISORS

Statutory Auditor

Crowe U.K. LLP 55 Ludgate Hill, London EC4M 7JW

Bankers Investment Manager

HSBC Bank plc 333 Vauxhall Bridge Road, London SW1V 1EJ

Rathbone Investment Management Limited Port of Liverpool Building, Pier Head, Liverpool L3 1NW

Solicitors

Burlingtons LLP 5 Stratford Place, London W1C 1AX

Mills & Reeve LLP 1 City Square, Leeds, LS1 2ES

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

THE TRUSTEES , who are also Directors of the Society (Company no.3667147), Registered Charity (no. 1081753) for the purposes of the Companies Act, submit their report and the audited financial statements for the year ended 31 December 2023. In preparing the report and financial statements of the Society, the Trustees have adopted the provisions of the Charities SORP (FRS 102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015. The Society is governed by its Memorandum and Articles of Association adopted on 12 November 1998 and last amended on 30 June 2022.

The Trustees at the date of this report, who served throughout the year except where otherwise stated, are the members of the Society’s Trustee Board listed on page 2.

The Society of Operations Engineers (SOE) is the umbrella organisation incorporating the following sectors IRTE, IPlantE, BES, Environmental and Operations and has a staff team of 24 members.

The membership of the SOE is drawn from a broad set of industrial and technical disciplines. However, the work they undertake is linked to their knowledge regarding inspection, maintenance and safety focused engineering.

There are five professional sectors for members working in particular technical specialisms including, engineer surveyor, plant, road transport and environmental engineering.

New members are invited to join the professional sector that most closely represents their interests and experience. Each professional sector supports its members by providing CPD opportunities, issuing technical guidance and support and ensuring that engineers and technicians have a voice which is clearly heard by government, regulators and business.

OBJECTIVES OF THE SOCIETY

The Society’s objectives, as specified in the Memorandum of Association as its objects, are:

AIMS OF THE SOCIETY

The aims of the Society are to promote, for the public benefit, safe, efficient and sustainable operations engineering to the community at large, through:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

2023 BUSINESS PLAN

In 2023 the Society reinstated many of its pre-pandemic series of events to support the business plan. The key focus was on re-establishing significant relationships, strengthening the Society’s interests, securing extensions to both the Environmental and Engineering Council licences and building membership, registration and irtec numbers. The Society continued to utilise online conferencing tools for meetings where possible and extended the webinar series.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

The Society is governed by a Trustee Board, comprising a maximum of sixteen members, who are responsible for the overall governance of the Society. The Board is supported by its trading subsidiary IRTE Services Limited, the Audit & Risk Committee, the Membership & Professional Standards Committee and the Professional Sector Councils.

The primary role of IRTE Services is as the trading arm of SOE, supporting the Commercial Vehicle Show, irtec and the Workshop Accreditation Scheme. The Membership & Professional Standards Committee is responsible for setting and maintaining professional standards and their role includes monitoring all applications from individuals wishing to join the Society or to register with the Engineering Council or the Society for the Environment. The Professional Sector Councils have responsibility for ensuring that the Society provides relevant support and professional development opportunities for their sector members.

There have been revisions to the Articles of Association to ensure that the Society is modern and relevant as an organisation. Changes have been put in place to enhance communication between the management team and the Trustees. Monthly meetings now take place with Trustee Board members to update on key issues and improve transparency of the Society.

The Trustees monitor the performance of the Society against its business plan, including the management of the risk register. The Trustees also measure the adequacy of the Society’s reserves and the financial performance against budget.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

Trustee selection, training and competence

The Trustee Board are principally elected from members of the Society. There are exceptions, for example, the two Directors of IRTE Services Limited, the Chair of the Membership & Professional Standards Committee and the President of the Society, which are managed by invitation and experience. The Professional Sectors are represented by a nominated member from each respective Council including elections to these Councils. The Trustee Board and the Professional Sector Councils conduct a review of skills needed and recruitment opportunities. The Trustee Board and the Professional Sector Councils are also able to co-opt key members with appropriate skills and knowledge to join and contribute their expertise towards the governance of the Society.

Upon taking up their post, newly elected Trustees receive training in areas covering corporate governance, charity law, GDPR in addition to the policies and procedures of the Society. The Trustees and members of the Professional Sector Councils are subject to the Society’s Code of Conduct. The Trustees confirm that they have complied with the requirements of the Charities Act 2011 and have due regard to the Charity Commission’s published general guidance on public benefit.

In addition to those listed on page 2, the following Trustees also served on the Board during the year:

Shaun Stephenson (resigned in August 2023) Ian Jones (resigned in August 2023) Chris Grime (resigned in October 2023)

Staff

The staff team structure has been re-evaluated and benefits from support by key Trustee Board members. The Trustees acknowledge the need to retain and train staff. SOE staff pay and benefits are reviewed annually in line with similar positions in the charity sector.

Volunteers

The Trustees are appreciative of the many members who give of their time to serve on the Professional Sector Councils and Committees both centrally and in the regions. There are some 250 volunteers who serve the Society in a variety of roles and responsibilities. The Trustees are aware that time given by the volunteers is extremely valuable and an important part of the running of the organisation.

Risk Management

The Trustees are responsible for the management of risks faced by the Society and seek early identification, evaluation and effective management and mitigation of key risks. A formal review of the Society’s risk management process is undertaken annually. The Trustee Board is responsible for regularly reviewing the risk register and reporting any issues of concern. Other controls include comprehensive strategic planning, budgeting and management reporting, formal lines of reporting and written procedures including authorisation of procurement and approval levels.

The principal risks to the Society, identified by the Trustees are:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

Governance and Patron

Sir John Parker was appointed as Patron of the Society in July 2019 and has represented the Society at a number of events during his tenure.

The Society continues to review its governance documents against the Charity Governance Code and updating its Articles of Association to represent best practice.

The updated Articles of Association brings the Society in line with recognised best practice within the Professional Engineering Institute community and was a key factor leading to the extension of the Society’s license with the Engineering Council.

The Society is led by its Trustee Board and supported by cross sector Committees providing detailed oversight and scrutiny of key areas of operation for the Society. Each Sector has its own Professional Sector Council which feeds into these committees and decision-making process (see organisation chart on page 4). The Trustee Board continues to ensure detailed oversight and scrutiny of key areas of operation for the Society. Terms of reference for the Board include:

REVIEW OF ACTIVITIES

Upon entering 2023, the Society had wide ranging plans intended to support its Vision.

The Society continued to utilise improved video conferencing platforms to strengthen relationships with key stakeholders and to take part in the development of accreditations and delivery of the CPD programme. The Society continues to work with key partners to enhance their apprenticeship programmes and supported the HGV and Bus & Coach Trailblazer group, providing apprentices with technical information through publications, website updates and assisting them to register with the Engineering Council and the Society for the Environment.

Although the Society is a membership body, the majority of its activities are open to the public and are relevant to a wide array of specialisms and interests related to engineering. By making most of its events and published content available to all, the Society aims to improve standards of training and competence across all operations engineering fields.

Senior members of staff and members of the Trustee Board, the IRTE Services Board and the five Professional Sector Councils attended a number of meetings with the Society’s stakeholders in order to raise the profile of the organisation as well as its Professional Sectors. Meetings have been held with Department for Transport (DfT), Institute of Motor Industry (IMI), Logistics UK (Logistics), Road Haulage Association (RHA), The Society of Motor Manufacturers & Traders (SMMT), Garage Equipment Association (GEA), Chartered Institute of Transport (CILT), Driver Vehicle Standards Agency (DVSA), Traffic Commissioners, HSE, Safety Assessment Federation (SAFed), Institute for Apprenticeships, vehicle manufacturers, fellow Professional Engineering Institutions and other key industry stakeholders.

Services to Engineers

By constantly reviewing the quality of information it provides to its members, the Society aims to ensure that standards of engineering in the relevant fields are maintained, ensuring that only competent practitioners serve the public. The Society’s digital platforms have been significantly improved to enhance the Society’s presence in today’s engineering world. The Society has also helped new engineers develop in their chosen field by assessment and accreditation of relevant training courses.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

The Society e-newsletter is circulated to members and non-members that subscribe. Regular coverage in trade and regional publications also continues to increase ensuring that members are aware of the Society’s activities.

Engineering Council registration is an important consideration for new members joining the Society as it demonstrates their engineering competency and is recognised throughout the world.

During 2023, the Society registered 45 new Chartered Engineers, 23 Incorporated Engineers and 55 Engineering Technicians with the Engineering Council.

Organisations continue to support Engineering Council registration, and many are now ensuring that all employees are professionally registered at the point of applying for membership. Dedicated support teams are in place to ensure that the process is efficient and onboarding new members from corporate entities is transparent.

The Society was awarded licensed body status by the Society for the Environment in 2011 enabling the Society to award the title of Chartered Environmentalist (CEnv) to suitably qualified individuals. In 2020 the Society was also granted the licence to award Registered Environmental Practitioner (REnvP).

Membership acquisition for the Society remained steady throughout 2023 and financial targets were met. There was a focus on ensuring routes to membership were streamlined and key employers targeted. Many of the promotional campaigns remained digital, ensuring efficient return on investment and allowing for greater tracking and information gathering. The Society will continue to leverage its digital reach and focus on attracting apprentices.

The Society continues to support apprenticeship schemes across relevant sectors including offering free apprentice membership to MAN, Scania and Stagecoach. The organisation also welcomed the return of the full Skills Challenge, with technicians completing at S & B Automotive before the awards ceremony in Birmingham on 7 September 2023.

The Society has accredited a number of courses during the year including courses approved as meeting the academic requirements of the Engineering Council as Incorporated Engineers and Engineering Technicians and also those meeting the Society’s academic requirements for Continuing Professional Development (CPD).

A total of 4,303 irtec licences were awarded in 2023 compared to 2,512 the previous year. This significant increase is a testament to the value and relevance of the Society’s own accredited scheme.

Regional Groups and Centres

2023 continued to see an improvement to many face to face centre and regional meetings. Although some Centres were unable to restart post pandemic, head office continues to support the network and engage with volunteers to ensure continued growth.

Publications

The Society’s has two publications, Transport Engineer and Operations Engineer. They are designed to help all involved with operations engineering to keep up to date with latest developments. All members receive the publication that is most relevant to them as part of their membership but there are also many non-members who subscribe to these publications. All members also receive a copy of the Society’s quarterly newsletter, SOE News. Corporate Partners receive copies of these publications to distribute amongst their staff and other key organisations also receive copies on a regular basis.

Education

SOE recognises that, as a Professional Engineering Institution, it has a responsibility greater than simply recruiting competent persons into membership. As an independent body it strives to ensure that the public is aware of the importance of engineering in general and of it being conducted by competent persons. SOE

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

ensures that members’ skills are kept up to date through technical publications, the website, CPD lectures and networking meetings with their peers.

The Society’s webinar series has established itself as a key part of the membership offering delivering regular online opportunities for its members to receive CPD recognition.

The Society, through its IRTE Professional Sector continues to work with the Traffic Commissioners and the Driver and Vehicle Standards Agency (DVSA) who support the accreditation of workshops and licensing of technicians. The Society’s technician licensing scheme (irtec) and the IRTE Workshop Accreditation Scheme are important in raising standards of vehicle maintenance and compliance across the road transport industry and continue to be sign posted through the DVSA’s Guide to Roadworthiness and the Fleet Operators Recognition Scheme (FORS).

The IRTE Professional Sector continues to work with the IMI in developing irtec, with the key objectives of improving industry standards and the competence of technicians working in the industry. The irtec Steering Group meets regularly with the remit of ensuring the irtec scheme continues to comply with industry requirements. Members of the group include representatives from manufacturers, operators, bus companies and training providers.

Fundraising

The charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.

Trading Company Activities

The IRTE Workshop Accreditation Scheme was developed in consultation with industry, vehicle manufacturers and key government agencies to deliver an independent accreditation scheme to regulate and improve industry standards for maintenance providers.

FINANCIAL REVIEW

Results

The Statement of Financial Activities (SOFA) for the year is set out on page 16 of the financial statements. The loss for the year (including losses on investment) is £124,517 compared to the loss last year of £87,842. Charitable income of £1,808,250 in 2023 is £47k lower than in 2022. Since the year end, a marketing campaign in early 2024 has seen 75 lapsed members rejoining the Society. In addition, there have been increases in the number workshop accreditation inspections and irtec registrants. Advertising revenue continues its downward trend and plans are afoot to mitigate the cost of producing the two in-house magazines, notably by only ceasing the production of the paper version of Transport Engineer. Investment income totalled £89k (2022: £75k).

The results for the year to December 2023 show an operating loss of £239,541 compared to an operating loss of £164,358 in 2022. By absorbing its share of the profit from the CV show of £60,607 (2022: £302,198) the overall position is a deficit of £178,934 (2022: surplus £137,840). The realised and unrealised gains on investments in 2023 of £54,417 (2022: £225,682 loss) gives an overall net movement downwards for the year of £124,517 (2022: loss £87,842).

Investment powers and policy

The Society’s investments are managed by Rathbones Investment Management Limited in accordance with the discretionary management agreement and the agreed investment policy. Rathbones reports quarterly and annually to the Trustee Board. The Trustees recognise there is risk associated with investment in mainstream financial markets and accept this risk in return for the prospect of additional returns over longer periods of time. As such, the Trustees wish to remain largely invested at all times, subject to cash reserves being held as part of the investment management process and to cover liabilities. The investments should be well diversified and include a range of assets including fixed interest stocks, UK shares and overseas shares.

The investment portfolio as at 31 December 2023 was valued at £2,936,665 (2022: £2,964,910) comprising 18% fixed interest funds, 34% UK equities, 33% overseas investments, and other investments 15%. The markets remain challenging and continues to affect the Society’s investments. The total return from the portfolio

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

was an increase of 4.6% over the year compared with a increase of 8.5% in the WM (Constrained by income) benchmark. The Trustees have reviewed the performance of the investments with the Investment Advisor and are happy to maintain the current investment strategy and will continue to closely monitor performance of the investments in the future.

Trading Company

The Society’s wholly owned trading subsidiary, IRTE Services Limited, made a net profit before gift aid but after taxation of £157,618 (2022: £375,595) from its activities. These activities include IRTE Workshop Accreditation and managing the Commercial Vehicle Show which is organised in partnership with the Society of Motor Manufacturers and Traders Limited (SMMT) and the Road Haulage Association (RHA). This profit from trading activities includes the accrued income from the 2023 CV show. This income remains undistributed as the partners are aware that the changes to the 2024 show may require additional cash resources.

IRTE Services has since given notice to its other two partners in the Commercial Vehicle Show LLP joint venture, of its intention to withdraw from the partnership with effect from 30 September 2024. As a result, IRTE Services will no longer be entitled to a share of the profits from any future show after this date and will cease to be responsible for the CV Show staff for which it charges a management fee.

The trustees are mindful of the implications of this withdrawal and have considered the financial effect that of the loss of this income stream on the finances of IRTE Services and the Group as a whole. They are confident that IRTE Services will continue to be viable and operate as a going concern in the foreseeable future.

Group reserves

The reserves policy, which is reviewed annually by the Board is formulated with regard to:

The Group’s aim is to maintain sufficient free reserves to cover 18 months total expenditure, the target for 2023 being £3.84m (2022: £3.73m).At the year end the free reserves which consist unrestricted funds less tangible fixed assets, totalled £3.77m (2022: £3.71m). The Group did not meet this target for free reserves at the end of 2023.

The current economic crises as evidenced by rising inflation and cost of living increases has reinforced the continual need for closer monitoring of the various income streams, reserves and cash-flow which may result in reserves being utilised in the short term to meet any shortfall in income. The Trustees remain committed to maintaining the current policy but accept that any departure, while necessary, will be temporary until such time as funds are available to rebuild back to the 18 months target level.

Tangible and Intangible fixed assets

The freehold land and building were professionally revalued in January 2006 at approximately £2.1m. The value in use is therefore in excess of the carrying value of £1,425,764 in the financial statements. The movements in fixed assets during the year are set out in note 7 to the financial statements.

The Trustees are minded to take the long term view that even though investment values have been impacted by current events, the Society has historically been and still is able to operate without the need to dispose of its investments. The Society has no immediate plans to dispose of any of its assets.

Going Concern

Having taken into consideration the risks and challenges facing the Society and weighing them against its assets, reserves and future income streams, the Trustees are confident that the Society can and will continue to operate as a going concern.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

LOOKING FORWARD

In 2024, the Society will continue to focus on its charitable objectives and the supporting goals of its business plan that include the delivery of:

The Society remains focused on delivering the long-term strategic aims of its 2025 vision that include:

Statement of Trustees’ responsibilities

The Trustees (who are also directors of the Society of Operations Engineers for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and the group for that period. In preparing these financial statements, the Trustees are required to:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The following statements have been affirmed by each of the Trustees of the charitable company:

AUDITOR

Crowe U.K. LLP has indicated its willingness to be re-appointed as the statutory auditor.

Signed on behalf of the Trustees by:

H M Seymour Chair

M Sweetmore Hon. Treasurer

Date: 23[rd] August 2024

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I NDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE SOCIETY OF OPERATIONS ENGINEERS

Opinion

We have audited the financial statements of Society of Operations Engineers for the year ended 31 December 2023 which comprise Consolidated Statement of Financial Activities, Consolidated and Company Balance Sheets, Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102. The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE SOCIETY OF OPERATIONS ENGINEERS

financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken during our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE SOCIETY OF OPERATIONS ENGINEERS

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the group’s and the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the group and the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data protection Regulation (GDPR), taxation legislation and employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE SOCIETY OF OPERATIONS ENGINEERS

financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected o detect noncompliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Janette Joyce Senior Statutory Auditor

For and on behalf of Crowe U.K. LLP Statutory Auditor Reading

Date: 3 September 2024

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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THE SOCIETY OF OPERATIONS ENGINEERS

Consolidated Statement of Financial Activities ( incorporating an Income and Expenditure Account ) for the year ended 31 December 2023

Notes
Income and endowments from:
Charitable activities
3
Other trading activities
Commercial trading operations
4
Investments
Total income
Expenditure on:
Charitable activities:
6
Other
Commercial trading operations (including taxation)
4
Investment management fees
Total expenditure
Net gains/(losses) on revaluation and disposal of investments
9
Net income/(expenditure)
Other recognised gains/(losses):
Net (loss)/income from joint ventures
5
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Total Funds
2023
£
1,808,250
422,580
88,660
2,319,490
2,215,481
325,569
17,981
2,559,031
54,417
(185,124)
60,607
(124,517)
5,334,971
5,210,454		 Total Funds
2022
£
1,855,171
390,500
75,352
2,321,023
2,150,230
317,103
18,048
2,485,381
(225,682)
(390,040)
302,198
(87,842)
5,422,813
5,334,971

The notes on pages 19 to 30 form part of these accounts.

The Statement of Financial Activities has been prepared in accordance with Financial Reporting Standard No 102. All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above.

All funds are unrestricted.

16

THE SOCIETY OF OPERATIONS ENGINEERS

Company Number: 03667147

Consolidated and Society Balance Sheets

Notes
Fixed assets
Tangible assets
7
Intangible assets
8
Investments
9
Investment in joint venture
Share of net assets
5
Current assets
Debtors
10
Cash at bank and in hand
11
Creditors: amounts falling due
within one year
12
Net current assets
Net assets
Funds
Unrestricted funds
15
General
Subsidiary trading
Profit for the year
Total Funds		 31.12.23
31.12.22
£
£
1,443,890
1,532,172
0
90,364
2,936,665
2,964,910
160,607
204,455
4,541,162
4,791,901
292,015
147,220
1,103,402
1,145,578
1,395,417
1,292,798
(726,125)
(749,727)
669,292
543,071
5,210,454
5,334,972
4,920,154
5,044,640
290,300
290,332
5,210,454
5,334,972
Group		 31.12.23
31.12.22
£
£
1,443,890
1,532,172
0
90,364
2,936,765
2,965,010
0
0
4,380,655
4,587,546
350,378
445,464
890,164
731,654
1,240,542
1,177,118
(700,943)
(719,924)
539,599
457,194
4,920,254
5,044,740
5,044,771
5,132,582
-
-
(124,517)
(87,842)
4,920,254
5,044,740
Society		 31.12.23
31.12.22
£
£
1,443,890
1,532,172
0
90,364
2,936,765
2,965,010
0
0
4,380,655
4,587,546
350,378
445,464
890,164
731,654
1,240,542
1,177,118
(700,943)
(719,924)
539,599
457,194
4,920,254
5,044,740
5,044,771
5,132,582
-
-
(124,517)
(87,842)
4,920,254
5,044,740
Society
4,587,546
445,464
731,654
1,177,118
(719,924)
457,194
5,044,740
5,132,582
-
(87,842)
5,044,740

The notes on pages 19 to 30 form part of these accounts.

The financial statements on pages 16 to 30 were approved by the Trustees and authorised for issue on 23 August 2024 and signed on their behalf by:

H Seymour President

M Sweetmore Honorary Treasurer

17

THE SOCIETY OF OPERATIONS ENGINEERS

Statement of Cash Flows for the year ended 31 December 2023

Total Funds
2023
Notes
£
Cash flows from operating activities:
Net cash provided by (used in) operating activities
(184,635)
Cash flows from investing activities:
Dividends, interest and rents from investments
88,660
Purchase of property, plant and equipment
(10,881)
Proceeds from sale of investments
410,728
Purchase of investments
(328,067)
Investment managers fees
(17,981)
Net cash provided by (used in) investing activities
142,459
Cash flows from financing activities:
0
Change in cash and cash equivalents in the reporting period
(42,176)
Cash and cash equivalents at the beginning of the reporting period
1,145,578
Cash and cash equivalents at the end of the reporting period
1,103,402
Reconciliation of net income/(expenditure to net cash flow from operating activities
(124,517)
Adjustments for:
Depreciation charges
189,527
(Gains)/Losses on investments
(54,417)
Dividends, interest and rents from investments
(88,660)
Decrease/(Increase) in investment in joint venture
43,848
Investment managers fees
17,981
Decrease/(Increase) in debtors
(144,795)
Increase/(decrease) in creditors
(23,602)
Net cash provided by (used in) operating activities
(184,635)
Analysis of cash and cash equivalents
Cash in hand
1,103,402
Total cash and cash equivalents
1,103,402
Net income/(expenditure) for the accounting period as per the
statement of financial activities		 Total Funds
2022
£
(36,777)
75,352
(8,430)
391,056
(490,004)
(18,048)
(50,074)
0
(86,851)
1,232,429
1,145,578
(87,842)
189,796
225,682
(75,352)
(104,455)
18,048
(18,075)
(184,579)
(36,777)
1,145,578
1,145,578

18

THE SOCIETY OF OPERATIONS ENGINEERS

Notes to the financial statements for the year ended 31 December 2023

1. Accounting policies

i. Company Information and Objectives

The Society of Operations Engineers is a registered charity (reg. no. 1081753) and company (reg. no. 3667147) which is incorporated and domiciled in the United Kingdom. The address of the registered office is 22 Greencoat Place, London SW1P 1PR

To improve and elevate technical and general understanding, knowledge, skill and competence of persons engaged or desiring to be engaged in operations engineering or any related employment, and the integrity and repute of the profession thereof.

To promote and encourage the advancement of science, technology and practice, and inventions and improvements in the field of operations engineering and any other related branches of engineering, and the dissemination and exchange of ideas, information and knowledge thereof.

By means of the above, but without prejudice to the generality thereof, to promote the safety, efficiency and environmental sustainability of operations engineering to the benefit of the community at large.

ii. Basis of accounting

These financial statements have been prepared in accordance with the Charities SORP (FRS 102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006 and UK Generally Accepted Practice.

The statement of financial activities (SOFA) and balance sheet consolidate the financial statements of the Society, its subsidiary IRTE Services Limited and dormant subsidiaries (note 21) and include the results of the Society's regional groups and centres on a line by line basis.

The Society's annual share of the profits/losses from its joint venture are included in the Statement of Financial Activites and its share of the net assets are included in the balance sheet.

The Society meets the definition of a public benefit entity under FRS 102.

The charity has taken advantage of the exemptions in FRS 102 from the requirements to present a charity only Cash Flow Statement and certain disclosures about the charity's financial instruments.

Having assessed the charity's financial position, its plans for the foreseeable future and the risks to which it is exposed, the trustees are satisfied that it remains appropriate to prepare the financial statements on a going concern basis.

iii. Functional & presentation currency

The functional currency of the charity and its subsidiary is considered to be pounds sterling because this is the currency of the primary economic environment in which the charity operates. The consolidated financial statements are also presented in pounds sterling.

19

THE SOCIETY OF OPERATIONS ENGINEERS

Notes to the financial statements for the year ended 31 December 2023

1. Accounting policies (continued)

iv. Critical accounting judgements and key sources of estimation uncertainty (policy)

In the application of the charity's accounting policies, which are described in notes I, the Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

v. Incoming Resources

All incoming resources from membership, education, events and publications for the year are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

vi. Resources Expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to an expenditure group. Salaries are allocated in proportion to the Society’s staff time spent on each expenditure group. Support costs are those costs incurred directly in support of the objects of the charity and also allocated to each expenditure group on the basis of staff time. Governance costs are those incurred in connection with the governance of the charity, including compliance with constitutional and statutory requirements. Irrecoverable VAT is written off as incurred.

vii. Depreciation

Depreciation has been charged at 2% on half of the cost of land and buildings, this being the proportion relating to the building only.

The following annual rates of depreciation on cost have been applied:

Furniture and fittings 20%
Property improvements 10%
Office equipment 20%
Computers 33%
c. Intangible assets
Digital infrastructure 20%

Assets over the value of £1,000 are capitalised.

20

THE SOCIETY OF OPERATIONS ENGINEERS

Notes to the financial statements for the year ended 31 December 2023

1. Accounting policies (continued)

viii. Pension scheme

The Society operates a Group Personal Pension Plan (Group PPP) which is a money purchase scheme. Pension costs are charged to the SOFA, representing a constant percentage of earnings payable by the Society to employee's plans. The Society has also made provision for employees not covered by the Group PPP to take out stakeholder pensions, in order to comply with current legislation.

ix. Publications

As in previous years the postage costs relating to the distribution of the SOE News are included under this heading.

x. Foreign currencies

Transactions expressed in foreign currencies are translated into sterling and recorded at rates of exchange approximating to those ruling at the date of the transaction. Monetary assets and liabilities are translated at rates ruling at the balance sheet date. All differences are taken to the SOFA.

xi. Income and expenditure

As permitted by Section 408 of the Companies Act 2006, the income and expenditure of the parent undertaking is not presented as part of these accounts. The deficit of the parent for the period under review was £282,135.

xii. Financial instruments

If the charity has any basic financial instruments, they are initially recognised at transaction value and subsequently measured at amortised costs using the effective interest method. Financial assets held at amortised cost comprise cash and bank and in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise trade and other creditors.

Investments, including bonds held as part of an investment portfolio are held at fair value at the Balance Sheet date, with gains and losses being recognised within income and expenditure. Investments in subsidiary undertakings are held at cost less impairment.

xiii. Gift Aid

Donations to the parent charity are recognised as an expense either when paid or at the date when the company has a legal liability to make the donation payment, if earlier.

2. Taxation

As a registered Charity, the Society is not liable to Corporation Tax on its income.

21

THE SOCIETY OF OPERATIONS ENGINEERS

Notes to the financial statements for the year ended 31 December 2023

3.
Income from charitable activities
Activities in furtherance of the charity's objects
Membership
Education and Events
Publications
Income from regional groups and centres
Room rental and sundry income		 Society
Year to
Year to
31.12.23
31.12.22
£
£
1,265,844
1,302,483
238,652
225,709
127,260
146,001
19,372
7,049
157,122
173,929
1,808,250
1,855,171		 Society
Year to
Year to
31.12.23
31.12.22
£
£
1,265,844
1,302,483
238,652
225,709
127,260
146,001
19,372
7,049
157,122
173,929
1,808,250
1,855,171
1,855,171

4. Commercial trading operations

The Society has a subsidiary that has been trading since 11 October 1993 and pays all its profits to The Society of Operations Engineers by gift aid. The principal activity of the Company is to raise funds in order to promote the aims of the Society.

The Society holding in the issued ordinary share capital of £100 is as follows:

Country of Registration Proportion held
Name Registration Number 31.12.23 31.12.22
IRTE Services Limited England and Wales 2854868 100% 100%

A summary of IRTE Services Limited's results are shown below and audited accounts will be filed with the Registrar of Companies at Companies House.

Profit and Loss Account for the year ended 31 December 2023
Turnover
Expenditure
Cost of sales
Administrative expenses
Operating Profit/(Loss)
Interest receivable
Profit/(Loss) on ordinary activities
Net (Loss)/Income from Joint Venture
(Loss)/Profit before gift aid and taxation
Amount gifted to the society
(Loss)/Profit before taxation
Taxation
Retained profit for the year		 Year to
31.12.23
£
417,624
(317,990)
(7,547)
(325,537)
92,087
4,956
97,043
60,607
157,650
(157,650)
0
(32)
(32)		 Year to
31.12.22
£
389,917
(309,943)
(7,160)
(317,103)
72,814
583
73,397
302,198
375,595
(307,071)
68,524
0
68,524

The company incurred corporation tax in the year of £31.92 (2022: £Nil). No further provision for corporation tax has been made on the company's profit for the year due to its policy of donating all its tax adjusted profits available for distribution under gift aid to its ultimate parent undertaking within nine months of each year-end date and because the company early implemented FRS 102 para 29.14A.

22

THE SOCIETY OF OPERATIONS ENGINEERS

Notes to the financial statements for the year ended 31 December 2023

4. Commercial trading operations (continued)

IRTE Services Limited
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds		 As at
31.12.23
£
496,577
(206,277)
290,300		 As at
31.12.22
£
638,117
(347,785)
290,332

The costs of the Commercial Vehicle Show LLP management team totalling £275,849 (2022: £278,998) are recharged to IRTE Services Limited by the SOE. One of the tenants occupying office space in the SOE buiding is a firm of solicitors which includes amongst its partners, a director of IRTE Services Limited. The contractual arrangements are at arms length and the tenant pays rent at a commercial rate. The directors of IRTE Services Limited agreed to declare a Gift Aid donation of £157,650 (2022: £307,071).

At 31.12.23 At 31.12.22
Amount owing by/(to) parent company (included in liabilities) (161,424) (307,796)
5. Joint Venture
IRTE Services Limited has a 33.33% interest in the Commercial Vehicle Show Limited Liability
Partnership.
Year to 30 June 2023
Summary financial information of the Partnership SOE
CV Show LLP total share
£ £
Profit and Loss Account
Turnover 1,688,268 562,756
Operating (Loss)/Profit 181,825 60,607
Interest receivable 0 0
Partners' Asset 300,000 100,000
Balance Sheet As at 30 June 2023
Current Assets 602,530 200,842
Current Liabilities (120,705) (40,235)
Net Assets 481,825 160,607
Represented by:
Partners' Capital Accounts 300,000 100,000
Partners' Current Accounts 181,825 60,607
481,825 160,607

The Partnership prepares accounts to 30 June and the above extract is therefore from the most recently available accounts.

23

THE SOCIETY OF OPERATIONS ENGINEERS

Notes to the financial statements for the year ended 31 December 2023

6a. Analysis of charitable expenditure

Year to 31 December 2023
Services to engineers
Regional groups and centres
Publications
Education
Marketing, committees and exhibitions
Governance
Year to 31 December 2022 (Prior Year)
Services to engineers
Regional groups and centres
Publications
Education
Marketing, committees and exhibitions
Governance		 Staff
Support
Other Direct
Total
Costs
Costs
Costs
£
£
£
£
437,756
252,401
27,720
717,877
24,453
14,099
113,035
151,587
40,008
23,068
334,534
397,610
109,191
62,957
22,510
194,658
168,209
96,986
100,692
365,887
170,652
98,394
118,816
387,862
950,269
547,905
717,307
2,215,481
£
£
£
£
444,215
242,393
34,829
721,437
29,066
15,861
102,479
147,406
40,035
21,846
329,722
391,603
93,981
51,282
17,161
162,424
202,442
110,466
114,358
427,266
147,262
80,356
72,476
300,094
957,001
522,204
671,025
2,150,230

6b. Analysis of support costs

Engineers
Regions
Publications
Education
Governance
Total Support
Marketing/Publicity
Total Support costs
2022		 62,393
57,811
2,461
3,485
3,229
137
5,702
5,283
225
15,563
14,420
614
23,975
22,214
946
24,323
22,537
959
Communications
Postage
Premises
and IT
& Printing		 62,393
57,811
2,461
3,485
3,229
137
5,702
5,283
225
15,563
14,420
614
23,975
22,214
946
24,323
22,537
959
Communications
Postage
Premises
and IT
& Printing		 62,393
57,811
2,461
3,485
3,229
137
5,702
5,283
225
15,563
14,420
614
23,975
22,214
946
24,323
22,537
959
Communications
Postage
Premises
and IT
& Printing		 42,427
2,370
3,878
10,583
16,303
16,540
Financial
Costs		 87,308
4,877
7,979
21,778
33,549
34,036
Depreciation		 Total
252,400
14,098
23,067
62,958
96,987
98,395
135,441 125,494 5,342 92,101 189,527 547,905
104,221
 145,597 5,440 77,150 189,796
522,204

6c. Governance costs are made up of the following:

Governance costs include audit fees of £24,500 (2022: £22,500), non audit fees of £3,655 (2022: £8,260). All 16 Trustees (including the 7 Directors of IRTE Services Ltd) claim out of pocket expenses in relation to travel and subsistence costs for attendance at meetings and representation events amounting to £44,306 (2022: £15,938); Trustees' and Officers' liability insurance £2,234 (2022: £2,128); remainder is expenditure on legal and other administrative costs and an apportionment of staff time.

24

THE SOCIETY OF OPERATIONS ENGINEERS

Notes to the financial statements for the year ended 31 December 2023

7.
Tangible fixed assets
Group and Society
Cost
Cost at 31 December 2022
Additions
Fully depreciated and written off
Cost at 31 December 2023
Depreciation
Balance at 31 December 2022
Charge for the year
Fully depreciated and written off
Balance at 31 December 2023
Net book value at 31 December 2023
Net book value at 31 December 2022		 £
2,257,845
0
0
2,257,845
744,098
87,983
0
832,081
1,425,764
1,513,747
Land and
buildings
freehold		 £
109,159
10,881
0
120,040
90,734
11,180
0
101,914
18,126
18,425
Computer and
other assets		 Total
£
2,367,004
10,881
0
2,377,885
834,832
99,163
0
933,995
1,443,890
1,532,172
8.
Intangible fixed assets
Group and Society
Cost
Cost at 31 December 2022
Additions
Fully depreciated and written off
Cost at 31 December 2023
Depreciation
Balance at 31 December 2022
Charge for the year
Asset Write downs from previous years
Balance at 31 December 2023
Net book value at 31 December 2023
Net book value at 31 December 2022		 £
449,485
0
0
Digital
Infrastructure
449,485
359,121
90,364
0
449,485
0
90,364

25

THE SOCIETY OF OPERATIONS ENGINEERS

Notes to the financial statements for the year ended 31 December 2023

9.
Investments
Group
Listed stocks and shares
UK Gilts and other fixed interest
UK Equities
Alternatives & Hedge Funds
Overseas investments
Investments total
Movements during the year
Group
Market value as at start of year
Purchases during the year
Sales at market value prior to disposal
Unrealised (loss)/gain on revaluation
Non market transactions
Market value as at end of year
Realised gain on disposal of investments
Unrealised (loss)/gain on revaluation
Gain/(losses) on non market transactions
Net gains/(losses) on revaluation and disposal		 31.12.23
Cost
£
512,815
640,974
452,783
740,919
2,347,491
of investments		 31.12.23
Market Value
£
532,925
979,578
450,075
974,087
2,936,665		 31.12.22
Cost
£
393,452
668,387
530,696
786,865
2,379,400
Year to
31.12.23
£
2,964,910
328,067
(416,575)
58,264
1,999
2,936,665
(5,846)
58,264
1,999
54,417		 31.12.22
Market Value
£
389,075
1,023,787
561,614
990,434
2,964,910
Year to
31.12.22
£
3,091,643
490,004
(392,504)
(224,342)
109
2,964,910
(1,450)
(224,341)
109
(225,682)

Investments over 5%

The following investments have a market valuation of over 5% of the total investment valuation: JP Morgan Asset Mgrs (UK) US Equity Income Hedged £172,207 (5.9%)

Society

The Society's investments include a further £100 investment in IRTE Services Limited (see note 4).

Debtors
Trade debtors (less bad debts)
Owed by subsidiary undertaking
VAT
Other debtors
Prepayments and accrued income		 Group
31.12.23
31.12.22
£
£
186,476
73,594
0
0
9,936
0
4,772
0
90,831
73,626
292,015
147,220		 Society
31.12.23
31.12.22
£
£
68,382
45,809
161,424
307,796
29,607
18,234
134
0
90,831
73,625
350,378
445,464		 Society
31.12.23
31.12.22
£
£
68,382
45,809
161,424
307,796
29,607
18,234
134
0
90,831
73,625
350,378
445,464
445,464

10. Debtors

26

THE SOCIETY OF OPERATIONS ENGINEERS

Notes to the financial statements for the year ended 31 December 2023

11.
Cash and bank balances
Deposit and current accounts
Cash in hand
12.
Creditors: amounts falling due
within one year
Subscriptions in advance
Trade and other creditors
Social security and other taxes
VAT
Accruals and deferred income		 Group
31.12.23
31.12.22
£
£
1,103,363
1,145,575
39
3
1,103,402
1,145,578
Group
31.12.23
31.12.22
£
£
384,296
424,456
225,486
193,236
29,466
42,765
0
2,921
86,877
86,349
726,125
749,727		 Society
31.12.23
31.12.22
£
£
890,125
731,651
39
3
890,164
731,654
Society
31.12.23
31.12.22
£
£
384,296
424,456
218,229
188,452
29,466
42,765
0
0
68,952
64,251
700,943
719,924		 Society
31.12.23
31.12.22
£
£
890,125
731,651
39
3
890,164
731,654
Society
31.12.23
31.12.22
£
£
384,296
424,456
218,229
188,452
29,466
42,765
0
0
68,952
64,251
700,943
719,924
719,924

Creditor accruals totalled £ Nil (2022: £Nil). The deferred income includes office rental income from tenants.

13. Capital Commitments and Operating Leases

During 2023, the Group entered into a three year operating lease agreement to hire two office photocopiers. The quarterly payment includes the rental and maintenance of these equipment. The outstanding contractual rental payments at year end totalled £5,136 (2022: £2,626)

14. Lessor Accounting

The Group has a number of lease and licence to occupy agreements with tenants occupying office space on the ground and second floors of 22 Greencoat Place. These agreements are open ended with notice periods of either three (for licences to occupy) or six (for leases) months required for either party to terminate the agreement.

The annual income from these agreements, should no termination take place is £155,721 (2022: £153,988)

27

THE SOCIETY OF OPERATIONS ENGINEERS

Notes to the financial statements for the year ended 31 December 2023

15.
Reserves
Year to 31 December 2023
Group
Balance at 31 December 2022
Surplus/(Deficit) for the year
Balance at 31 December 2023
Represented by
Fixed assets
Cash at bank and in hand
Other net current assets
Society
<br>Balance at 31 December 2022<br>Surplus/(Deficit) for the year<br>Balance at 31 December 2023<br>_Represented by_<br>Fixed assets<br>Cash at bank and in hand<br>Other net current assets<br>**Year to 31 December 2022**<br>**Group**<br>Balance at 31 December 2021<br>Surplus/(Deficit) for the year<br>Balance at 31 December 2022<br>_Represented by_<br>Fixed assets<br>Cash at bank and in hand<br>Other net current assets<br>**Society**<br>
Balance at 31 December 2021
Surplus/(Deficit) for the year
Balance at 31 December 2022
Represented by
Fixed assets
Cash at bank and in hand
Other net current assets		 General
Reserves
£
5,248,891
(126,856)
5,122,035
4,541,162
1,014,983
(434,110)
5,122,035
4,958,660
(126,825)
4,831,835
4,380,655
801,745
(350,565)
4,831,835
5,346,648
(97,757)
5,248,891
4,687,446
1,059,498
(498,053)
5,248,891
5,124,942
(166,282)
4,958,660
4,587,546
645,574
(274,460)
4,958,660		 Regional
Reserves
£
86,080
2,339
88,419
0
88,419
0
88,419
86,080
2,339
88,419
0
88,419
0
88,419
76,164
9,916
86,080
0
86,080
0
86,080
76,164
9,916
86,080
0
86,080
0
86,080		 Total
Reserves
£
5,334,971
(124,517)
5,210,454
4,541,162
1,103,402
(434,110)
5,210,454
5,044,740
(124,486)
4,920,254
4,380,655
890,164
(350,565)
4,920,254
5,422,812
(87,841)
5,334,971
4,687,446
1,145,578
(498,053)
5,334,971
5,201,106
(156,366)
5,044,740
4,587,546
731,654
(274,460)
5,044,740

28

THE SOCIETY OF OPERATIONS ENGINEERS

Notes to the financial statements for the year ended 31 December 2023

16.
Staff
The total staff emoluments including taxable benefits for the year:
Gross salaries permanent and temporary staff
Employer's NI
Employer's pension
Life assurance cover		 Year to
31.12.23
£
782,738
79,746
43,655
3,964
910,103		 Year to
31.12.22
£
793,279
86,806
45,194
4,334
929,613

Redundancy and termination payments totalling £14,942 (2022: £30,623) were paid during the year.

2023 2022
Key Management (defined as the senior management team):
Total emoluments including taxable benefits for the year 427,494 494,136

During the year, payments totalling £6,000 (2022: £300) were paid to Mr J E Eastman (Trustee) as fees in connection with workshop inspections on behalf IRTE Services Ltd. No other payments were made except for out of pocket expenses (see note 6c).

Average number of employees analysed by function was:
Charitable expenditure
Management, administration and support
CV Show management team		 2023
17
3
4
24		 2022
17
2
4
23

A number of temporary staff were employed during the year to provide additional support in certain departments.


departments.
Number of staff whose emoluments (excluding pensions) including
taxable benefits from the Society exceeded £60,000: 2023 2022
£60,001 - £70,000 1 1
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000 1 1
£100,000 - £110,000
£110,000 - £120,000

The Society's pension contribution for any member of staff whose emoluments exceed £60,000 is paid at the same rate as applicable to all staff eligible to join the group personal pension scheme.

17. Society Pension Arrangements

The Society's contributions made on behalf of eligible employees in the year amounted to £56,037 (2022: £60,998). (Also see note 1(vii) of the accounts.)

29

THE SOCIETY OF OPERATIONS ENGINEERS

Notes to the financial statements for the year ended 31 December 2023

18. The Council of Management

The Trustee Board consists of 16 members including the chairs of the 5 Professional Sector Councils. No remuneration or other benefit in money or money's worth was given by the Society to any other member of the Board except out of pocket expenses (see note 6c).

19. Volunteers

The Trustees are grateful for the invaluable time and support given by the 200 volunteers who who sit on the Trustee Board, IRTE Services Board, five Professional Sector Councils, the Membership & Professional Standards Committee and Regional Committees.

20. Liability of Members

The Society is a company limited by guarantee and Clause 8 of its Memorandum of Association states that the maximum contribution for which a member can be liable in the event of the Society's liquidation is £10.

21. Dormant Companies

The following companies are subsidiaries of SOE but did not trade during the year:

Name: Country of
Registration:		 Registration
Number		 Reserves
31.12.23		 Reserves
31.12.22
£ £
Institution of Plant Engineers England & Wales 419646 1,000 1,000
Institute of Road Transport Engineers England & Wales 395541 1,000 1,000

Both of these companies are limited by guarantee.

22. Financial Instruments

At the balance sheet date, the consolidated group held financial assets at amortised cost comprising investment in joint venture, trade debtors, other debtors and cash and cash deposits of £1,468,568 (2022: £1,431,035) and financial liabilities at amortised cost comprising trade and other creditors and accruals of £341,829 (2022: £325,271).

Total interest income received in respect of financial assets held at amortised cost totalled £13,073 (2022: £2,071). The charity held financial assets at fair value through income or expenditure company investments of £2,936,665 (2022: £2,964,910). Movements in the year through the Statement of Financial Activities comprise dividend income of £75,587 (2022: £73,282) and net gains of £54,417 (2022 losses: £225,682)

23. Post Balance Sheet Event

The Directors gave notice to its other two partners in the Commercial Vehicle Show LLP joint venture, of its intention to withdraw from the partnership with effect from 30 September 2024.

The effect of this withdrawal will mean that IRTE Services will no longer be entitled to a share of the profits from any future show after this date and will cease to be responsible for the CV Show staff for which it charges a management fee.

30